China XD Plastics (CXDC) Stock Is Climbing

China XD Plastics Company Ltd (NASDAQ: CXDC) is screaming for the top in the market this morning, but if you’re looking for press releases or SEC filings, you’ll be hard pressed to find anything. So, what’s the deal? Why is the stock up over 100% in the premarket hours?

sting your time! Start finding winning trades in minutes with Trade Ideas!

Here’s Why CXDC Stock Is Climbing

As mentioned above, China XD Plastics Company is screaming for the top in the market today, but there seems to be no news driving the move? So, what’s the deal?

Looking into social media, it seems as though retail investors are getting very excited about this stock. That’s an important indicator, especially in 2021, the year of the retail investor. 

You see, since the beginning of the year, individual investors have been banding together, going after what has become known as meme stocks. The goal was originally to push short-selling hedge funds out of their positions, but the early success showed individual investor just how powerful they are when they stick together. 

So, now it seems as though every stock that gets a ton of attention on social media starts screaming for the top, regardless of short interest, industry, or any other metric. 

That seems to be the case today with CXDC. Looking on social media, you’ll quickly find that the retail community is standing behind the stock, which sets the stage for tremendous growth. 

How Long Will Gains Last?

This is a nearly impossible question to answer. After all, I don’t have a crystal ball that lets me look into the future. Nonetheless, most meme stocks make pretty short term runs. Sure, the gains may take place for a few sessions, or even for a week, but as soon as the retail community starts to lose interest, the prices of these stocks tend to taper off. 

sting your time! Start finding winning trades in minutes with Trade Ideas!

The Bottom Line

The bottom line here is that CXDC is making a name for itself as the next meme stock this morning. While the gain are likely to be short lived, the short-term opportunity surrounding the stock is hard to ignore. 

Don't Miss the Next Big Story

Join our free mailing list below to receive real-time, actionable alerts!